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Republic Airways blames fuel costs for $15M quarterly loss

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Republic Airways Holdings Inc. late Monday reported that it lost nearly $15 million in the second quarter, as high fuel prices continued to drag down its results.

The company said it spent nearly $227 million on aircraft fuel in the quarter, compared with $161 million in the same period a year earlier.

Republic said it lost $14.9 million, or 31 cents per share, on $739.7 million in revenue. In the second quarter of 2010, the company reported a profit of $2.6 million, or 8 cents a share, on revenue of $683.3 million.

The Indianapolis-based company has been vulnerable to fluctuations in fuel prices since buying Frontier Airlines and Midwest Airlines two years ago. It previously had specialized in fixed-fee contract flying for other airlines, which reimbursed it for fuel costs.

On June 10, Republic reached an agreement with pilots that provides them a stake in Frontier in return for pay freezes and other concessions. Republic agreed to attract other equity investors to the airline and to reduce its stake below 50 percent by 2015. Republic negotiated the pact as part of restructuring plan aimed at saving $120 million.

Results for the second quarter were affected by a series of one-time items. Excluding those items, the Frontier and Midwest operations—which now operate under the Frontier banner—posted a pretax loss of $32.8 million.

Excluding one-time items, Republic’s contract-flying business earned $17.6 million before taxes.

In Monday's announcement, the company said it expects that third-quarter revenue and pre-tax profit each will be reduced by about $10 million because of a severe hailstorm at Denver International Airport on July 13 that damaged 22 of its aircraft and forced it to cancel about 250 flights.

Republic shares are down sharply from the $10.39 high reached right before the Frontier and Midwest acquisitions. They closed Monday at $4.27 each, down 6 cents on the day.

 

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  • Republic
    Republic,
    Should just cut ties with Fronteir. Fronteir has done nothing but bring the company down and add cost. Fronteir employee drug there company down and now are dragging Republic. Before Frontier always in the black. Fronteir people do not know how to run a airline they just act like it.Republic is a great company Frontier not at all
  • republicFIVE
    Read this
  • need crews
    Maybe Republic could make a profit if they did not cancel flights like yesterday because they had no crew. A perfect sold out (or close) plane sat idle because Republic did not have a crew? You would think they would have stand by crews at their Indy hub. Not only did Republic not have equipment sit idle and lose revenue, they also caused unnecessary disruptions to the lives of those passangers that they stranded.

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  1. Now if he'd just stay there...

  2. Daniel - what about the many US citizens who do NOT follow what the Bible teaches? The Hindus, Jews, Muslims and others who are all American citizens entitled to all rights as Americans?? This issue has NOTHING to do with "What the Bible says..." Keep all Churches separate from State! Pence's ongoing idiocy continues to make Indiana look like a backwards, homophobic state in the eyes of our nation. Can't we move on to bigger issues - like educating our kids?

  3. 1. IBJ should link to the referenced report. We are in the age of electronic media...not sharing information is lazy. Here is a link http://www.in.gov/gov/files/Blue_Ribbon_Panel_Report_July_9_2014.pdf 2. The article should provide more clarity about the make-up of this panel. The commenters are making this item out to be partisan, it does not appear the panel is partisan. Here is a list of the panel which appears to be balanced with different SME to add different perspectives http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=138116?formation_id=189603 3. It suggests a by-pass, I do not see where this report suggests another "loop". 4. Henry, based on your kneejerk reaction, we would be better off if you moved to another state unless your post was meant as sarcasm in which case I say Well Done. 5. The article and report actually indicates need to improve rail and port infrastructure in direct contradiction to Shayla commentary. Specifically, recommendation is to consider passenger rail projects... 6. People have a voice with their elected officials. These are suggestions and do not represent "crony capitalism", etc. The report needs to be analyzed and the legislature can decide on priorities and spending. Don't like it, then vote in a new legislature but quit artificially creating issues where there are none! People need to sift through the politics and provide constructive criticism to the process rather than making uninformed comments in a public forum based on misinformation. IBJ should work harder to correct the record in these forums when blatant errors or misrepresentations are made.

  4. Joe ... Marriage is defined in the Bible ... it is mentioned in the Bible often. Marriage is not mentioned once in the US or Indiana Constitution ...

  5. Daniel - Educate me please: what does the Bible have to do with laws? If the government wasn't in the business of marriage to begin with, then it wouldn't have to "define" marriage at all. Marriage could be left as a personal, religious, or otherwise unregulated action, with no ties to taxes, legal status, etc. Then people could marry whomever they want, and all this silliness would go away. Remember to vote Libertarian in November.

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